Legal Question in Real Estate Law in Virginia

Negotiating after a mortgage deficiency judgement

I have received a judgement against me in the arena of $37k + $3k legal fees by a law firm representing the 2nd mortgage lender of a property I owned in Georgia. The first lender foreclosed on the property, and the 2nd lender pursued me. I did try to short sale, but neither lender was willing to work with me. My question is ... is it possible for me to negotiate down the judgement amount in order to be done with it? How would I go about doing that? What are the tax implications upon the scenario? Could I possibly pay 10% of $40k to be done with this or will that not work? In the larger picture of the number of foreclosures happening in this country, how successful are banks/law firms/collectors on collecting on mortgage deficiency judgements?


Asked on 5/23/08, 12:09 am

1 Answer from Attorneys
Susan Allen The Law Office of Susan E. Allen, PLLC

Re: Negotiating after a mortgage deficiency judgement

You may attempt to negotiate the judgment amount, but your judgment creditor is not obligated to accept anything less than the judgment amount. Further, the judgment could be domesticated in Virginia and your assets could be used used to satisfy this judgment.

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Answered on 5/23/08, 7:08 am


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